1. Principles of Entrepreneurship
Summer 2016
Chapter 1: Introduction to Entrepreneurship
Barringer, Ireland

2. Learning Objective Entrepreneurship & its importance explained
Intrapreneurship defined
Reasons people decide to become entrepreneurs
Characteristics of Successful Entrepreneurs
Common Myths about Entrepreneurs
Types of Start-Up Firms
Economic & Social Impact of Entrepreneurship

3. Entrepreneurship
Entrepreneurship is the development of a business from the ground up — coming up with an idea and turning it into a profitable business. But while the definition of entrepreneurship may be simple, its execution is much more difficult.
Entre (Between) & Prendre (to take)
Are entrepreneurs different from inventors?

4. Entrepreneurship
Entrepreneur is the one who organizes, manages, and assumes the risks of a business or enterprise.
“Entrepreneurship is the Process by which individuals pursue opportunities without regard to resources they currently control” Prof. Stevenson & Prof. Jarillo
“Entrepreneurship is the Art of turning ideas into business” Fred Wilson

5. Intrapreneurship: Corporate Entrepreneurship
Intrapreneurship is the act of behaving like an entrepreneur while working within a large organization.
The entrepreneurial continuum measures the “Entrepreneurial Intensity” of firms from rigid conservative organizations to highly entrepreneurial organizations
Some firms take extraordinary measures to keep their firms innovative and entrepreneurial

6. Famous Entrepreneur – worldwide
Bill Gates
Steve Jobs
Jeff Bezo
Mark Zuckerberg
Jawed karim
Larry Page & Sergey Brin

7. Famous Entrepreneurs – Bangladesh
Muhammad Yunus
Who is he?
Latifur Rahman
Kaniz Almas Khan

8. Famous Entrepreneurs – Who failed before attaining success
Thomas Edison
Colonel Sanders
Walt Disney
Oprah Winfrey
Henry Ford

9. Why people become Entrepreneurs ?
1. Be your own “Boss’
- Don’t Like working for others
- Can’t imagine being confined in a 9 to 5 job
- Always dreamed of owning my own business
2. Pursue an Idea
- Recognized an opportunity or an unfulfilled need (e.g. Bikash)
- Gathered enough experience & connections to fly solo
3. Realize Financial Rewards
- Want to be rich & live a lavish lifestyle (own: BMW & Travel Abroad, etc)
- Money brings social status & power

10. Characteristics of Classic Entrepreneurs
1. Passion for the Business
2. Product/Customer Focus (Kamal Quadir: cellbazar & bkash)
3. Tenacity Despite Failure
“Genius is 1% inspiration and 99% perspiration”
4. Execution Intelligence (imagination/ thought/creativity action & measurable results)

11. Myths about Entrepreneurship
Myth 1. Entrepreneurs are born, not made
Myth 2. Entrepreneurs are gamblers
Myth 3. Entrepreneurs are motivated primarily by money
Myth 4. Entrepreneurs should be young & energetic
Myth 5. Entrepreneurs love the spotlight

12. Common Traits and Characteristics of Entrepreneurs
Achievement motivated
Persuasive
Alert to opportunities
Promoter
Creative
Resource Assembler/ leverager
Decisive
Self-starter
Energetic
Tenacious
Has a strong work ethic
Visionary
Moderate risk taker
Self-confident

13. Types of Entrepreneurs
1. Salary-substitute Entrepreneurs;
- Means of livelihood or No other options (can’t get a respectable job)
- Inherited a small family business
2. Lifestyle entrepreneurs; (e.g. Like cycling and own a cycle shop)
3. High Impact Entrepreneurs;
- Create product/ services that have worth & importance to customers and provide a measure of usefulness to customers that they wouldn’t have otherwise (Google or Apple)
- Want to make the world a better place (Sir Abed or Professor Yunus)

14. Importance of Entrepreneurship
Creative Destruction: By Joseph Schumpeter
Entrepreneurship’s importance to an economy and the society in which it resides was first articulated in 1934 by Joseph Schumpeter, an Austrian economist who in his book The Theory of Economic Development, Schumpeter argued that entrepreneurs develop new products and technologies that over time make current products and technologies obsolete. Schumpeter called this process creative destruction. Because new products and technologies are typically better than those they replace and the availability of improved products and technologies increases consumer demand, creative destruction stimulates economic activity. The new products and technologies may also increase the productivity of all elements of a society.
The creative destruction
--Product, Technology, Pricing, Distribution or Retail formats
Economic impact:
Innovation & Job Creation
Social Impact:
Makes lives easier, enhance productivity at work, improve health & entertain
Impact on larger firms
--Help larger firms to be more effective & efficient